Chapter 03: Managing Diversity in a Global Environment
Test Bank
MULTIPLE CHOICE
1. __________ is the buying and selling of goods and services among different countries.
a.
Global networking
b.
Global business
c.
Global enterprise
d.
Global marketing
2. Which of the following companies are based primarily in one country but transact business in
other countries?
a.
International companies
b.
Multinational companies
c.
Subsidies
d.
Franchises
3. A(n) __________ has ownership in operations in two or more countries.
a.
international company
b.
global company
c.
multinational corporation
d.
multicountry company
4. Which of the following is a company owned and controlled by another company?
a.
Multinational
b.
Parent company
c.
Global company
d.
Subsidiary
5. A(n) __________ company eliminates artificial geographic boundaries by not having a singular
national headquarters.
a.
global
b.
international
c.
subsidiary
d.
transnational
6. Kayla works for Cellular World Company and has created an ad for the newest version of the
U-Phone, using imagery of the American flag and an eagle to convey the idea that the phone
gives its users increased freedom. Kayla is based in the United States but developed the ad for
use worldwide. Citizens of other countries found the ads offensive and improper. In this
scenario, by failing to consider the perspectives of international customers, Kayla was showing
__________.
a.
parochialism
b.
ethnocentrism
c.
protectionism
d.
nationalism
7. Kayla works for Cellular World Company and is based in the United States. During a phone call
with one of the company’s German engineers, she told them that American engineering and
quality was better than German engineering and that they should revise their processes and
operations to match those of the plant in America. Kayla is showing __________.
a.
parochialism
b.
nationalism
c.
ethnocentrism
d.
protectionism
8. Which of the following is not considered to be a trade barrier?
a.
Dumping
b.
Embargo
c.
Quota
d.
Tariffs
9. __________ decrease the supply of products and cause higher prices of imported products.
a.
Tariffs
b.
Embargos
c.
Subsidies
d.
Quotas
10. Which trade barrier uses a tax method?
a.
Tariffs
b.
Quotas
c.
Embargos
d.
Subsidies
11. A company selling products in one country at a high profit and selling the products in another
country at a loss with intentions of driving out competitors is said to be __________.
a.
diversifying
b.
protective
c.
dumping
d.
embargoing
12. __________ are a total ban on the importing of a product from one or more countries.
a.
Embargos
b.
Quotas
c.
Subsidies
d.
Tariffs
13. __________ set a limit on the number or volume of a product that can be imported or exported
during a set period.
a.
Subsidies
b.
Tariffs
c.
Quotas
d.
Embargos
14. Government grants, loans, and tax breaks given to domestic companies are considered to be
__________.
a.
quotas
b.
subsidies
c.
tariffs
d.
embargos
15. If Smith and Wesson attempted to sell handguns directly to a distributor in another country and
that country wanted to protect their domestic firearms industry, they would most likely be
stopped by a(n) __________.
a.
embargo
b.
quota
c.
subsidy
d.
tariff
16. A direct tax on imports to make them more expensive is known as a __________.
a.
tariff
b.
embargo
c.
subsidy
d.
quota
17. Which of the following replaced the General Agreement on Tariffs and Trade (GATT)?
a.
CAFTA-DR
b.
NAFTA
c.
WTO
d.
UNASUR
18. ASEAN stands for __________.
a.
Association of Southeast Asian Nations
b.
Association of Standard Ethics in Asian Nations
c.
All South East Asian Nations
d.
Alliance of Southeastern Asian Nations
19. The __________ is how much of one country’s currency one gets for that of another country.
a.
balance of trade
b.
purchasing power
c.
standard of living
d.
exchange rate
20. Which of the following refers to the level of wealth, comfort, material goods, and necessities
available to a certain socioeconomic class in a certain geographical area?
a.
Purchasing power
b.
Balance of trade
c.
Standard of living
d.
Exchange rate
21. The relative cost of a product in different countries refers to __________.
a.
purchasing power
b.
balance of trade
c.
standard of living
d.
exchange rate
22. A country decides to put a direct tax on imported jewelry in order to encourage citizens to
purchase jewelry from their own country. What concept is at work in this situation?
a.
Tariffs
b.
Quotas
c.
Subsidies
d.
Embargos
23. Lay’s potato chips are sold around the globe, but the selection of available flavors varies from
country to country to accommodate different taste preferences. This is an example of the
____________________ practices of international and multinational corporations.
a.
think locally, act globally
b.
think globally, act locally
c.
think locally, act locally
d.
think globally, act globally
24. All of the following are methods a company can use to become global, except __________.
a.
importing/exporting
b.
contracting
c.
leasing and renting
d.
direct investment
25. The lowest cost/lowest risk form of global business is __________.
a.
franchising
b.
direct investment
c.
contracting
d.
global sourcing
26. The highest cost/highest risk form of global business is __________.
a.
franchising
b.
direct investment
c.
contracting
d.
global sourcing
27. __________ saves money and better allocates global resources, as it benefits everyone because
countries specialize in what they can do better than others.
a.
Joint ventures
b.
Global sourcing
c.
Direct investment
d.
Franchising
28. __________ is similar to global sourcing, but it tends to be on a large scale.
a.
Franchising
b.
Direct investment
c.
Contracting
d.
Importing/exporting
29. Apple designs and markets products that are actually manufactured by a Taiwanese company.
This is an example of __________.
a.
joint ventures
b.
contracting
c.
licensing
d.
importing/exporting
30. Toyota, a Japanese company, owns manufacturing plants in Kentucky, Indiana, West Virginia,
and several other states as well as in more than a dozen other countries outside of Japan. This is
an example of __________.
a.
direct investment
b.
contracting
c.
franchising
d.
importing/exporting
31. Which of the following is most characteristic of multinational corporations?
a.
Strategic alliances and joint ventures
b.
Licensing and franchising
c.
Direct investment
d.
Importing/exporting
32. Licensing and franchising are also known as __________.
a.
contract manufacturing
b.
diversification
c.
cooperative contracts
d.
investments
33. An agreement to share resources that does not necessarily involve creating a new company is a
__________.
a.
joint venture
b.
direct investment
c.
strategic alliance
d.
contracting
34. A __________ is created when two or more firms share ownership of a new company.
a.
joint venture
b.
strategic alliance
c.
direct investment
d.
contract
35. The buying and building of operating facilities in a foreign country is a __________.
a.
joint venture
b.
strategic alliance
c.
direct investment
d.
global manufacturing decision
36. Which of the following is not one of the six major management practices of global companies?
a.
Global technology and R&D
b.
Global strategy
c.
Global marketing
d.
Global human resource management
37. __________ is the variety of people with different group identities within the same workplace.
a.
Diversity
b.
Global business
c.
Ethnocentrism
d.
Cultural variety
38. __________ policies are designed to improve work outcomes for underrepresented groups by
providing them with extra help in the employment process.
a.
Equal employment
b.
Valuing diversity
c.
Affirmative action
d.
Inclusion focus
39. All the following are consequences of discrimination through stereotyping, except
__________.
a.
decreased turnover
b.
decreased self-esteem and individual performance
c.
conflict between individuals and groups
d.
harassment
40. __________ people make up the largest minority group in the United States.
a.
Black/African American
b.
Asian
c.
Hispanic
d.
American Indian and Alaska native
41. According to the U.S. Census Bureau, by 2060, one in three people in the Unites States
population will be __________.
a.
White
b.
Black/African American
c.
Asian
d.
Hispanic
42. “Other types of diversity” do not include __________.
a.
effort
b.
weight
c.
personality
d.
attractiveness
43. All the following are benefits of diversity training, except __________.
a.
minimizing differences
b.
viewing people as individuals
c.
realizing that diversity improves teamwork
d.
breaking down negative stereotypes
44. Sarah has been with an organization for 10 years and is considered a highly knowledgeable
employee that is a valuable asset to the organization. However, every time she tries to apply for
a promotion for which she is well qualified, she has been declined. She’s noticed that other
women in her organization appear to be having similar experiences but that her male coworkers
don’t seem to have any problems getting promoted. The barrier Sarah and her female coworkers
appear to be experiencing is commonly called the __________.
a.
glass ceiling
b.
glass wall
c.
glass elevator
d.
glass floor
45. A __________ can be executed to see the records of diverse group hiring and efforts made to
help the groups succeed.
a.
human resource audit
b.
corporate culture audit
c.
hiring audit
d.
diversity audit
46. Which of the four types of diversity face the most discrimination?
a.
Age
b.
Gender
c.
Race/Ethnicity
d.
Disability
47. The __________ prohibits discrimination against people with disabilities (treating them
differently because of their disabilities).
a.
Employment with Disability Act (EDA)
b.
Americans with Disabilities Act (ADA)
c.
Disability Employment Act (DEA)
d.
Disabled Americans Act (DAA)
48. __________ is defined as a mental or physical impairment that substantially limits one or more
major life activities.
a.
Handicap
b.
Incapability
c.
Disability
d.
Constraint
49. All the following are traits of ethnicity, except __________.
a.
skin color
b.
customs
c.
allegiances
d.
cultural background
50. Which one of the following is considered a myth regarding the older workforce?
a.
They tend to cost the company more in terms of salary and benefits.
b.
They are less likely to quit.
c.
They have fewer injuries on the job.
d.
They are not capable of learning new technology.
51. Individuals with birth years ranging from 1925–1945 are known as the __________ generation.
a.
Baby Boomers
b.
Generation Y/Millennial
c.
Traditionalist
d.
Generation X
52. Individuals with birth years ranging from 1981–2006 are known as the __________ generation.
a.
Baby Boomers
b.
Generation Y/Millennial
c.
Traditionalist
d.
Generation X
53. Individuals with birth years ranging from 1946–1964 are known as the __________ generation.
a.
Baby Boomers
b.
Generation Y/Millennial
c.
Traditionalist
d.
Generation X
54. Individuals with birth years ranging from 1965–1980 are known as the __________ generation.
a.
Baby Boomers
b.
Generation Y/Millennial
c.
Traditionalist
d.
Generation X
55. In terms of their career path, which generation is most likely to perceive that changing jobs is
necessary?
a.
Traditionalist
b.
Baby Boomers